Google, long recognized as the largest customer of data-labeling firm Scale AI, is reportedly planning to sever its ties with the startup following news that Meta will acquire a 49% stake in the company. According to five sources familiar with the matter, the move signals Google’s discomfort with a key rival gaining influence over a major supplier of critical AI training data.
One source revealed that Google had intended to pay Scale AI approximately $200 million in 2025 for labeled datasets essential to training its advanced AI systems, including those that power Gemini—Google’s answer to OpenAI’s ChatGPT. However, the announcement of Meta’s substantial investment has prompted a strategic reassessment. This week, Google began preliminary discussions with several of Scale AI’s competitors, exploring options to shift that work elsewhere.
Meta’s stake in Scale AI, which now values the company at $29 billion—up from $14 billion prior to the deal—adds complexity to Scale’s future. The potential loss of Google’s business represents a significant setback, particularly given Scale’s reliance on a small group of major clients. As Meta absorbs key figures from Scale, including CEO Alexandr Wang and select team members, the startup may face turbulence in maintaining continuity and independence.
Despite the upheaval, Scale AI maintains that its operations remain solid. In a statement, a company spokesperson emphasized its strong relationships with corporate and government partners and reaffirmed its commitment to data security and customer confidentiality. The company declined to discuss the status of its partnership with Google.